Avoid foreclosure with home mortgage modification programs in Alaska
Home mortgage modification programs in Alaska can help if you are in financial distress and you want to avoid foreclosure. Both private lenders and the government have programs to reduce your mortgage payments so you can keep your home. Some of the federal programs for Alaska loan modifications reward lenders for reducing your payments, interest rate or mortgage principle.
The U.S. Housing and Urban Development Department (HUD) in conjunction with the U.S. Treasury offer several Making Home Affordable (MHA) programs to help you avoid foreclosure or exit your mortgage as a last resort.
When you apply for home mortgage modification programs in Alaska, you must prove your financial hardship. Be prepared to show proof of income, lost wages, hospitalization or other reasons that you can't afford to pay your mortgage. Since the purpose of this program is to help individuals make their house payments more affordable, you’ll need to also prove you can afford the lower payments that your lender approves.
Although there are several other federal programs, the most publicized home mortgage modification programs in Alaska are the Home Affordable Modification Program (HAMP) and the Home Affordable Refinance Program (HARP).
In the HAMP program, your lender may modify your loan terms to 31 percent of your total household income. You must be employed and meet all the other criteria. You may also get an Alaska loan modification through the HARP program if you are current on your home loan and in good standing with the lender for the past year of payments. This is a popular option for homeowners who cannot get traditional refinancing because they owe more on the loan than the house is worth.
Finally, another Alaska home loan modification program designed to lower monthly payments is the Principal Reduction Alternative (PRA) program. To be eligible for this program, you must owe more on your loan than your house is worth and your current monthly house payment must exceed 31 percent of your monthly income.
MHA has programs for veterans, people who are unemployed and homeowners with second liens. Because the MHA help is so comprehensive, you should talk to an authorized housing counselor to find out which program fits your circumstances. You may also qualify for a traditional refinance. RealtyNow can connect you to lenders who may offer the help you need.